Doing Business in China

How to sell services, conduct trade, and manufacture goods in China without owning a local company?

The rules and regulations for foreign companies to do business in China can be considered as strict and for some businesses even as restrictive, However, it certainly remains possible for foreign companies to do business in China without owning a local entity. Foreign companies can sell their services in China, sell and import their goods into China and have their products produced in China, all without owning a local entity.

Why should foreign companies in China be ready to expect the unexpected? 2 exceptional cases to explain you why and what you can do about it

Whereas there have been numerous success stories driven by this growth, it is still common for many foreign companies to enter this market unprepared, or worse, uninformed of the potential pitfalls. Even the most sophisticated companies cannot envision all the potential problems they may encounter. If you were going to open a chain of eating establishments in China (a lucrative endeavor by the way) would it ever occur to you that someone may be selling you counterfeit salt? 

We cannot anticipate every problem, however, experienced professionals like Moore Stephens do have some local knowledge and can share that with multinationals willing to spend the time and effort into learning the do’s and don’ts of this market.

This article will describe that even though it is impossible to anticipate every situation which may liquidate your investment, expose your trade secrets, and/or damage your valuable reputation, it makes sense to be as well prepared as possible when doing business in China.

Have you updated your Business License in China already? An overview of the reform in China to the Five-in-One Business License

The Chinese authorities are trying to simplify administrative procedures and to reduce bureaucratic hurdles with the aim of developing a market-based economy and “promoting mass entrepreneurship and innovation”. Therefore, they have instituted administrative reforms simplifying China’s business establishment and registration procedures

In October 2015, the “Three-in-One” business license has been implemented, a single integrated business license instead of three separate certificates (i.e. Business License, Organization Code and Tax Certificate) when registering.

In October 2016, it is the “Five-in-One” business license, which is including the Social Security and Statistics Bureau Certificate, has been implemented and shall replace the previous ‘Three-in-One’ business license.

7 Things You Probably Overlooked When Doing Business In China

China provides many opportunities for foreign businesses, although its complexity, regulations and constant changes make it difficult to keep track on what is advised and what is required when doing business in the Mainland.

Following our experience, we have prepared a list of 7 things many foreign businesses have overlooked or did not think about when doing or start doing business in China.